UK
The UK is a leading trading power and financial centre, and one of the quartets of trillion dollar economies of Western Europe. With the economy being one of the strongest in Europe, the UK property market has consistently remained a sound long term investment throughout the last 30 years.
Whether the UK housing market booms or goes bust is as about as hot a conversation topic as ever. Not surprisingly, for millions of Britons their property is not just a roof over their heads, but a passport to financial security and even a pension. In the last 10 or so years, off-plan property investment has consistently out performed the stock market and other forms of investment by phenomenal levels.
However, over the past couple of years, the credit crunch has impacted on every sector of the UK market, in particular 2008 and the first few months of 2009 was extremely difficult for buyers and sellers alike. Through lack of capital, and restrictions by the banks on lending, developers found themselves with properties they were unable to sell. This resulted in massive discounts being offered to move product and ease cash flow to continue to build the properties already in construction.
There have been significant favourable changes to the balance sheets of most of the UKs major house builders and the amount BMV (below market value) properties have significantly reduced. This is good news for the investor as more orderly marketing is resulting in hardening prices and there is movement and more confidence in the buy-to-let market, which traditionally is where most investors rely on their profit.
A significant proportion of surveyors are reporting that house price rises are back up to the same level at the peak of the boom times in 2007. In addition many estate agents are confirming prices are increasing more than at any time since the credit crunch caused the bottom to fall out of the property market. This is according to the Royal Institute of Chartered Surveyors.
22% more agents saw rises than falls last September, the highest positive reading since May 2007, and compares with just 10% in August 2009. Clearly this evidence suggests a price revival being driven by a shortage of properties, particularly that of family houses. There is however evidence of a North – South divide, with prices in London and the South – East showing growth while many parts of the North are showing decline.
A recent RICS report stated that the imbalance between demand and supply means that house prices will move higher in the immediate future. This seems to be a reliable early indicator of market trends, having given warning ahead of the property crash in the early 90s and also signalled price falls in the summer of 2007.
There is optimism that mortgages are progressively becoming more available, since the drought of 2008/9 and providing this continues, will provide consumer confidence and help with the recovery of the housing market.
Through our established relationship with the exclusive distributor, we can offer the facility of a property deposit guarantee scheme. This is a bond under-written by a major bank, which replaces the requirement for cash that buyers usually have to pay out at exchange of contracts on off-plan property purchases. It is a great scheme for home movers, investors and first time buyers and releases cash during the period up to completion. The facility is available in the UK and also in some overseas countries.
Finally, with direct links to some of the major UK constructors, we can offer a selection of packages. Off-plan using a property exchange bond backed by a Major International Bank., new build properties ready for occupation, buy-to-let deals and funding packages (sts).
